In the US, the flood of unemployment caused by the Covid-19 Coronavirus outbreaks, breaks records. The world’s biggest economy, now suffering an extreme downfall due to Covid-19 outbreak, finds unemployment rises during Coronavirus outbreak. The unemployment in the US reaches more than 3.3 million, leading towards massive crises in the country’s economy. It is a possibility that the unemployment rate would crush the previous number this upcoming week.
The economists predict a declining situation for the economy of the US due to Covid-19 Coronavirus. Unemployment could increase by 30% as stated by an official of the Federal Reserve. There is a high probability of dropping G.D.P. up to 50%, which would be the worst-case scenario for the economy.
“It is projected that 81,321 cases have been stated to be infected by the deadly Covid-19 pandemic. It contains a death ratio of 1000 people, which is estimated to be greater than in other countries, especially Italy and China”, the New York Times.
This Coronavirus outbreak has brought a sudden economy shutdown in the US. Numerous cafes, parks, theaters, shops, gyms, shopping malls and other crowded areas unexpectedly shut their doors, bringing unemployment to many people in the US. Such measures take place for the safety of American citizens to avoid the spread of Covid-19 pandemic. Without any doubt, everyone is facing a tough time we had ever confronted before because of this deadly outbreak globally.
3.3 million appeals have been requested by Americans for receiving unemployment benefits, Department of Labor. Numerous economist is of view that this will be the starting of a huge spike in joblessness that probably will increase up to 40 million in April.
On Wednesday, the largest aid bill had been passed by the Senate to help unemployed Americans due to the Covid-19 pandemic. This package is made for unemployed and layoff workers and it comprises $1,200 checks.
In the US, 3 million people become unemployed in just seven days. It is mind-boggling how the US economy is in the urge of collapse due to the Covid-19 coronavirus spread, which is known to be the world’s biggest economy.
Many workers/employees are not eligible for applying unemployment benefits, which means the layoff number will be higher soon, causing chaos among people of the US. Private ventures with limited assets are likewise suffering more in this situation of the pandemic outbreak.
Workers who are undocumented, independent contractors, self-employed and students are not eligible to receive unemployment aid. Moreover, individuals who worked less than a half year are not included in this category.
In addition, many people were not able to apply for unemployment aid since computer systems got over-burden in the many states of America.
A storm of more layoffs is yet to come. The situation of the US economy will take time to revive to its original position The unemployment rate will begin to decrease again once the condition of the economy is free from lockdown. The wait for the rise in the economy is the only option to the US government to adopt in this situation of Coronavirus outbreak.